EXHIBIT G.

Number of women and other shareholders in national banks.

Amount of interest-bearing deposits upon which interest has not been credited during past 12 months.

Number and amount of accounts dormant since 1912. Taken from reports of condition for Mar. 5, 1917.

EXHIBIT H.

LEGISLATION AFFECTING OR RELATING TO NATIONAL BANKS.

A number of important acts which directly or indirectly affect the operations of national banks have been passed by Congress since the last annual report of this office was made to Congress. Briefly summarized according to the subject matter to which they relate, the effect of these acts is as follows:

NATIONAL BANK CIRCULATION.

Prior to the passage of the Federal reserve act all national banks were required as a condition of doing business to maintain a minimum amount of United States Government bonds on deposit with the Treasurer of the United States against which circulating notes might be issued. The Federal reserve act as originally passed relieved banks incorporated after its passage from this requirement, but permitted such banks, at their option, to become banks of issue. The language of the act was not free from ambiguity, but, as interpreted by this office, it required all banks organized prior to the passage of the act to maintain the minimum deposit of bonds referred to, and any bank organized after the passage of the act which issued any circulating notes was also required to maintain this minimum deposit without reference to the amount of notes issued. By the act of June 21, 1917, this ambiguity has been removed, and all banks are now required to deposit bonds equal only to the amount of circulating notes actually issued.

Under preexisting law national banks were not permitted to issue circulating notes in denominations of less than $5 and were not permitted to issue more than one-third of their notes in this denomination. In view of the increasing demand for notes of smaller denominations such banks were authorized by the act of October 5, 1917, to issue notes in denominations of $1 and $2, provided no bank issued more than $25,000 in these denominations. By the same act the limitation on notes of denomination of $5 was removed.

RESERVES.

Prior to the act of June 21 national banks were required to carry a certain amount of reserve in cash, a fixed amount with the Federal reserve banks, and were permitted to carry the balance with other national banks approved as reserve agents by this office. By the act of June 21 they are required to carry all reserve with the Federal reserve bank. Under existing laws banks in central reserve cities are required to carry with Federal reserve banks 13 per cent against demand deposits, those in reserve cities are required to carry 10 per cent against demand deposits, and those in nonreserve cities or country banks are required to carry 7 per cent against demand

deposits. All member banks, regardless of location, are required to maintain a reserve of 3 per cent against time deposits. The act of April 24, 1917, authorizing the first Liberty Loan, amends section 5191, Revised Statutes, so as to make it unnecessary for national banking associations and other member banks to carry any reserve against United States deposits.

ACCEPTANCE POWER.

Under the terms of the Federal reserve act as originally passed, national banks were permitted to accept drafts and bills of exchange in transactions which involve the importation or exportation of goods. By the act of June 21 national banks are authorized to accept drafts and bills of exchange which grow out of transactions involving the domestic shipment of goods, provided shipping documents are attached at the time of acceptance, or which are secured at the time of acceptance by a warehouse receipt or other such document conveying or securing title covering readily marketable staples. Such acceptances are subject to appropriate limitations as

to amount.

STATUTORY CRIMES.

Section 22 of the Federal reserve act, which makes it a crime for officers and directors to be the beneficiaries of transactions engaged in with their banks, other than those authorized by law, was amended by the act of June 21, so as to include in the authorized transaction carrying of deposit accounts by such officers and directors with their banks and the making of loans under certain circumstances by the banks to such officers and directors.

EXTENSION OF FUNCTIONS OF FEDERAL RESERVE BANKS.

Federal reserve banks were originally authorized to receive deposits only from member banks and from the United States, and for purposes of exchange from other Federal reserve banks. By the act of June 21 such banks are now authorized for the purpose of exchange and collection, to receive deposits of current funds, checks, drafts, and maturing notes and bills from nonmember banks or trust companies which maintain with the Federal reserve bank a balance sufficient to offset items in transit held for the account of the depositing bank.

The amendments to the Federal reserve act and the national-bank act and certain laws authorizing the issuance and sale of the Liberty Loans which affect directly or indirectly the operations of national banks are submitted herewith.

FEDERAL RESERVE ACT AMENDMENTS APPROVED JUNE 21, 1917.

Be it enacted, etc., That section three of the act known as the Federal reserve act be amended and reenacted so as to read as follows:

"SEC. 3. The Federal Reserve Board may permit or require any Federal reserve bank to establish branch banks within the Federal reserve district in which it is located or within the district of any Federal reserve bank which may have been suspended. Such branches, subject to such rules and regulations as the Federal Reserve Board may prescribe, shall be operated under the supervision of a board of directors to consist of not more than seven nor less than three directors, of whom a majority of one shall be appointed by the Federal reserve bank of the district, and the remaining

directors by the Federal Reserve Board. Directors of branch banks shall hold office during the pleasure of the Federal Reserve Board.'

SEC. 2. That section four in the paragraph relating to the appointment of class C directors and prescribing their duties be amended and reenacted so as to read as follows:

"Class C directors shall be appointed by the Federal Reserve Board. They shall have been for at least two years residents of the district for which they are appointed, one of whom shall be designated by said board as chairman of the board of directors of the Federal reserve bank and as 'Federal reserve agent.' He shall be a person of tested banking experience, and in addition to his duties as chairman of the board of directors of the Federal reserve bank he shall be required to maintain, under regulations to be established by the Federal Reserve Board, a local office of said board on the premises of the Federal reserve bank. He shall make regular reports to the Federal Reserve Board and shall act as its official representative for the performance of the functions conferred upon it by this act. He shall receive an annual compensation to be fixed by the Federal Reserve Board and paid monthly by the Federal reserve bank to which he is designated. One of the directors of class C shall be appointed by the Federal Reserve Board as deputy chairman to exercise the powers of the chairman of the board when necessary. In case of the absence of the chairman and deputy chairman, the third class C director shall preside at meetings of the board.

"Subject to the approval of the Federal Reserve Board, the Federal reserve agent shall appoint one or more assistants. Such assistants, who shall be persons of tested banking experience, shall assist the Federal reserve agent in the performance of his duties and shall also have power to act in his name and stead during his absence or disability. The Federal Reserve Board shall require such bonds of the assistant Federal reserve agents as it may deem necessary for the protection of the United States. Assistants to the Federal reserve agent shall receive an annual compensation, to be fixed and paid in the same manner as that of the Federal reserve agent."

SEC. 3. That section nine be amended and reenacted so as to read as follows: "SEC. 9. Any bank incorporated by special law of any State, or organized under the general laws of any State or of the United States, desiring to become a member of the Federal Reserve System, may make application to the Federal Reserve Board, under such rules and regulations as it may prescribe, for the right to subscribe to the stock of the Federal reserve bank organized within the district in which the applying bank is located. Such application shall be for the same amount of stock that the applying bank would be required to subscribe to as a national bank. The Federal Reserve Board, subject to such conditions as it may prescribe, may permit the applying bank to become a stockholder of such Federal reserve bank.

In acting upon such applications the Federal Reserve Board shall consider the financial condition of the applying bank, the general character of its management, and whether or not the corporate powers exercised are consistent with the purposes of this act.

"Whenever the Federal Reserve Board shall permit the applying bank to become a stockholder in the Federal reserve bank of the district its stock subscription shall be payable on call of the Federal Reserve Board, and stock issued to it shall be held subject to the provisions of this act.

"All banks admitted to membership under authority of this section shall be required to comply with the reserve and capital requirements of this act and to conform to those provisions of law imposed on national banks which prohibit such banks from lending on or purchasing their own stock, which relate to the withdrawal or impairment of their capital stock, and which relate to the payment of unearned dividends. Such banks and the officers, agents, and employees thereof shall also be subject to the provisions of and to the penalties prescribed by section fifty-two hundred and nine of the Revised Statutes, and shall be required to make reports of condition and of the payment of dividends to the Federal reserve bank of which they become a member. Not less than three of such reports shall be made annually on call of the Federal reserve bank on dates to be fixed by the Federal Reserve Board. Failure to make such reports within ten days after the date they are called for shall subject the offending bank to a penalty of $100 a day for each day that it fails to transmit such report, such penalty to be collected by the Federal reserve bank by suit or otherwise.

As a condition of membership such banks shall likewise be subject to examinations made by direction of the Federal Reserve Board or of the Federal reserve bank by examiners selected or approved by the Federal Reserve Board.

"Whenever the directors of the Federal reserve banks shall approve the examinations made by the State authorities, such examinations and the reports thereof may be accepted in lieu of examinations made by examiners selected or approved by the Federal Reserve Board: Provided, however, That when it deems it necessary the board

may order special examinations by examiners of its own selection and shall in all cases approve the form of the report. The expenses of all examinations, other than those made by State authorities, shall be assessed against and paid by the banks examined. "If at any time it shall appear to the Federal Reserve Board that a member bank has failed to comply with the provisions of this section or the regulations of the Federal Reserve Board made pursuant thereto, it shall be within the power of the board after hearing to require such bank to surrender its stock in the Federal reserve bank and to forfeit all rights and privileges of membership. The Federal Reserve Board may restore membership upon due proof of compliance with the conditions imposed by this section.

"Any State bank or trust company desiring to withdraw from membership in a Federal reserve bank may do so, after six months' written notice shall have been filed with the Federal Reserve Board, upon the surrender and cancellation of all of its holdings of capital stock in the Federal reserve bank: Provided, however, That no Federal reserve bank shall, except under express authority of the Federal Reserve Board, cancel within the same calendar year more than twenty-five per centum of its capital stock for the purpose of effecting voluntary withdrawals during that year. All such applications shall be dealt with in the order in which they are filed with the board. Whenever a member bank shall surrender its stock holdings in a Federal reserve bank, or shall be ordered to do so by the Federal Reserve Board, under authority of law, all of its rights and privileges as a member bank shall thereupon cease and determine, and after due provision has been made for any indebtedness due or to become due to the Federal reserve bank it shall be entitled to a refund of its cash paid subscription with interest at the rate of one-half of one per centum per month from date of last dividend, if earned, the amount refunded in no event to exceed the book value of the stock at that time, and shall likewise be entitled to repayment of deposits and of any other balance due from the Federal reserve bank.

"No applying bank shall be admitted to membership in a Federal reserve bank unless it possesses a paid-up, unimpaired capital sufficient to entitle it to become a national banking association in the place where it is situated under the provisions of the national-bank act.

"Banks becoming members of the Federal Reserve System under authority of this section shall be subject to the provisions of this section and to those of this act which relate specifically to member banks, but shall not be subject to examination under the provisions of the first two paragraphs of section fifty-two hundred and forty of the Revised Statutes as amended by section twenty-one of this act. Subject to the provisions of this act and to the regulations of the board made pursuant thereto, any bank becoming a member of the Federal Reserve System shall retain its full charter and statutory rights as a State bank or trust company, and may continue to exercise all corporate powers granted it by the State in which it was created, and shall be entitled to all privileges of member banks: Provided, however, That no Federal reserve bank shall be permitted to discount for any State bank or trust company notes, drafts, or bills of exchange of any one borrower who is liable for borrowed money to such State bank or trust company in an amount greater than ten per centum of the capital and surplus of such State bank or trust company, but the discount of bills of exchange drawn against actually existing value and the discount of commercial or business paper actually owned by the person negotiating the same shall not be considered as borrowed money within the meaning of this section. The Federal reserve bank, as a condition of the discount of notes, drafts, and bills of exchange for such State bank or trust company, shall require a certificate or guaranty to the effect that the borrower is not liable to such bank in excess of the amount provided by this section, and will not be permitted to become liable in excess of this amount while such notes, drafts, or bills of exchange are under discount with the Federal reserve bank.

"It shall be unlawful for any officer, clerk, or agent of any bank admitted to membership under authority of this section to certify any check drawn upon such bank unless the person or company drawing the check has on deposit therewith at the time such check is certified an amount of money equal to the amount specified in such check. Any check so certified by duly authorized officers shall be a good and valid obligation against such bank, but the act of any such officer, clerk, or agent in violation of this section may subject such bank to a forfeiture of its membership in the Federal Reserve System upon hearing by the Federal Reserve Board."

SEC. 4. That the first paragraph of section thirteen be further amended and reenacted so as to read as follows:

"Any Federal reserve bank may receive from any of its member banks, and from the United States, deposits of current funds in lawful money, national-bank notes, Federal reserve notes, or checks, and drafts, payable upon presentation, and also,